With Red, ch 63, turn. Work 32 rows as for White piece, then continue as from the 65th row on until only 3 s c remain. Break thread. Make 2 side insets in the same pattern, by starting with ch 12, and working for 16 rows. Fold White piece at 16th row, place the red piece inside the folded White piece, so that the points are at opposite sides. Sew in the insets at the sides, at the same time sewing together the White and Red pieces.

Handle Strap: With White, using thread double, ch 7 and work in same pattern for 7 rows. Ch 2 at end of 7th row. 8th row: Make 3 s c in 3rd st from hook and continue in pattern to end of row. Make 3 more s c's in last st, ch 2, turn. 9th to 18th rows incl: Work in pattern. 19th row: Sl st in 1st 3 sts, ch 2, 3 s c in each middle s c of next 2 groups. Ch 2, turn. 20th to 27th rows incl: Same as 1st 7 rows. Sew handle across back of bag vertically.